NYSE Regulation announced that it has censured and fined Bear, Stearns & Co. Inc. US$1.5 million for a variety of violations.

The firm was accused of trading violations in connection with index arbitrage trading; failure to supervise suspicious brokerage accounts; and improper communications by a research analyst whose remarks, made during a presentation for an initial public offering that was broadcast as part of an Internet road show, did not present fair and balanced information.

“These violations, though diverse in nature, all point to a weakness of internal controls,” says Susan Merrill, chief of enforcement, NYSE Regulation. “Executives must understand that the cost of doing business always includes sufficient resources and personnel to fulfill operational and compliance requirements and also to remedy problems when they are uncovered.”

In settling these charges brought by NYSE Regulation, Bear, Stearns & Co. Inc. neither admitted nor denied the charges.